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USDA Answers Gov. Pillen’s Call to Boost Producer LIP Payment Rate
LINCOLN, NE – Today, Governor Jim Pillen announced that payments to Nebraska cattle producers who have suffered weather-related losses, will be compensated at a higher rate. Gov. Pillen thanked Secretary of Agriculture Tom Vilsack for answering his call to boost the Livestock Indemnity Program (LIP) payment rate, in response to his urgent request on behalf of Nebraska cattle producers.
Gov. Pillen contacted Sec. Vilsack in early August when it became apparent that cattlemen would suffer losses due to the combination of high temperatures, high humidity and lack of air movement – a trifecta of weather conditions that took its toll on livestock across the state.
“The ag industry is often at the mercy of weather completely outside the control of an individual producer. The extremely hot temperatures and humidity that we have experienced over the past month are a good example of that,” said Gov. Pillen. “Even by doing all they could to protect their animals, producers still experienced some death loss. More work needs to be done, but I commend Sec. Vilsack and his team for understanding our situation in Nebraska and making administrative tweaks to improve program outcomes which will ensure producers are compensated in a timely fashion and at a more appropriate market rate.”
As a result of the adjustment, the LIP payment increased from $1,244 per head to $1,618, an increase of $374 per head. The LIP is administered by the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA). It provides assistance to producers who experience excessive livestock losses, usually due to adverse weather events.
The updated LIP payment rate is effective immediately and will be applied retroactively to Jan. 1, 2023, for all eligible causes of loss including excessive heat, tornado, winter storms, and other qualifying adverse weather events. Producers who have already received LIP payments for losses this calendar year will receive an additional payment, if applicable, commensurate with the updated rate. Details about eligibility and payment rates are available on the most recent LIP fact sheet.
Gov. Pillen continues to urge producers to do their part and report losses to their county Farm Service Agency (FSA) offices. County FSA offices across Nebraska can help determine eligibility for federal assistance for producers who were adversely affected by any extreme weather event in 2023. Losses that occurred within the past month should be reported as soon as possible. A notice of loss is required to be documented and reported to the local FSA within 30 days of the loss becoming apparent.
“While there is no way to get a complete accounting of how many cattle were lost this summer, this rate increase will go a long way toward helping producers recover,” said Gov. Pillen. “At the time this weather event occurred, animals were ready for market, which means they were more valuable. Owners are deserving of a higher rate of compensation.”
